The Turkish property market is going through a real rush. Prices for condos and villas are on the rise and investors keep coming to the Turkish resort country, bringing new investments into the country’s infrastructure. Both high-priced and low-priced properties are in high demand, both beachfront and away from the sea, in large cities and in sheltered areas.
For more information about real estate market developments in Turkey, real forecasts and analysis, check out our full property market overview in this publication.
Analysts in Turkey have estimated a significant growth in the residential property market in all respects. Citizens of Turkey, and foreigners, see the opportunity and put their confidence in investing in property assets as a reliable option to maintain personal savings. This is indeed a smart investment, as the average cost per property has risen by 123% in Turkish Lira during the last year alone.
The biggest property price increases are in Istanbul, Aydin and Antalya. During the year, the prices of properties in Antalya have risen by 123% per annum in the lira. Property prices in the province of Mersin increased by 167%, which is the highest annual growth of property prices in Turkey in the last 30 years.
By the end of winter 2022, housing sales have increased by 25% over the same period a year ago. Most buyers are Turkish citizens and only about 5% of the total number of sales deals were made by foreigners. Over the past several months, however, there has been a rapid growth in the number of buyers from abroad.
The leading place in the number of sales is taken by Istanbul. Ankara follows the Turkish metropolis, while Izmir finishes in the top 3.
Statistics reveal an increase in the number of mortgages sold in Turkey. In comparison with last year, the number of outstanding mortgages has increased by 39%. In the total volume of deals, mortgages made up 23%. More foreign buyers have resorted to interest-free instalment payments, which are offered by most Turkish developers for new homes, instead of using loans.
Has there been an increase in the proportion of foreigners looking to invest in property for sale in Turkey?
We are witnessing significant growth in the number of foreign nationals in Turkey. Part of them are tourists who are coming for a vacation, and others are remaining to live in the Republic of Turkey. More and more of them are staying, and it is already noticeable in the number of people visiting markets, shopping malls, restaurants and the beaches.
Consequently, there is little or no new accommodation available in the most popular resort towns. Within just a few months rents for apartments in Turkish resorts have increased two to three times. Tenants are also ready to pay six months’ rental charges in advance. Therefore the owners can choose themselves to which tenants they wish to rent out their properties.
The same situation can be seen in the real estate market. The number of people, who want to buy a property in Turkey is actively increasing. Most of the investors are from Russian-speaking countries. In the short time frame, the experts forecast new emigration waves, so the demand from foreigners, as well as the Turkish property market, will continue to grow.
Turkish residence permit and citizenship for real estate investments – new trends
In recent times, the number of people who want to buy property in Turkey and apply for a second passport has grown tremendously. Several important legislative changes have taken place regarding citizenship for investment and residence permits in Turkey:
From May 2022, foreign investors can now claim a “golden passport” upon purchase of property in Turkey for an amount of over $ 400,000. Earlier, the investment was $ 250,000. Any kind of property – secondary, from the developer, a residential or commercial property, plots of land from a Turkish national or company – will be accepted. Purchases are made in US Dollars, to support the national currency and protect the interests of investors.
Turkish residence permits are also still available to foreigners regardless of the value of the property. The new rules, nevertheless, grant the owner a so-called touristic ikamet. Such an ikamet permits foreigners to stay in Turkey, but the period does not count against the period needed to obtain citizenship at a later date. The minimum Cadastral price of the property must be at least $75,000 – only then the time spent in the Republic of Turkey is taken into account. Applicants for an ikamet are the immediate family members of the buyer – such as the applicant’s husband/ wife and children up to the age of 18 who have been registered on the TAPU.
Which kind of property is most popular with customers right now?
Luxury resort properties in Turkey in 2022 are in great demand in the low-cost category. Foreign investors are actively buying up properties at prices ranging from €70,000-85,000 to €150,000.
The top sellers are still the compact vacation properties and the more spacious properties for permanent residence, the penthouses in modern developments with an extended internal infrastructure. However, lots of buyers are choosing properties in newly developing and growing holiday areas preferring condos in already established areas.
More affluent clients are choosing free-standing properties and detached villas with private gardens, swimming pools and parking. There is considerable growth in investor interest in liquid plots of land.
The minimum investment budget for a property in Turkey
To buy a good ready-made home will need about € 150,000 euros. For this money, it is possible to get a condo in a residential complex with space-saving amenities (swimming pool, children’s playground, recreation area) in a developing area. The apartments are suitable for renting, as well as for living.
Mortgages and interest-free instalments are available for purchasers who do not have the full amount of money to purchase an accommodation. We recommend calculating in advance your personal financial budget, your ability to pay and the fact that in addition to the down payment you have to pay the balance on an approved schedule.
Many developers are now offering flats from €80,000 – 100,000 in developing areas of Antalya. Buying at an early construction stage will guarantee a great price and a future with good financial prospects. The main thing is to choose the right location, level of development, views etc. In case of a 100% payment at the shell stage, developers are often willing to negotiate extra discounts.
Property price forecast for Turkey
All indications are that the rental and real estate market in Turkey will continue to grow. It is difficult to say how far prices will go up. But in addition to migration trends, it is worth taking into account the seasonal factor: the summer holidays are coming, the tourist flow will increase, and the demand for accommodation, with some in short supply of objects, will certainly increase.
In addition to the issue of the effect on the growth of property values in Turkey, one should add a significant factor – a substantial increase in the cost of construction material. The majority of building materials are also imported and their value directly affects the price of the Turkish property. So the cost of flats and houses in Turkey will not decrease – ahead of a straightforward increase.
Real estate remains an important financial tool for your savings. Many investors who used to keep their money in gold or foreign currency accounts are now buying real estate in Turkey.
Is it worth a property to buy now?
Once you are within a budget, it is definitely worth buying a property at this time. Taking into account the growth in demand, and the permanent rise in prices, we advise you not to put your dream of property for sale in Turkey on the back burner. The most important thing is to find a suitable for all characteristics of the proposal.
Cooperating with an experienced real estate company, such as e, you can be sure that you will find a truly profitable, attractive price and quality properties.
Get in contact with a licensed Tolerance Homes real estate agency – we are in close contact with our clients 24/7!